Industry Funded Research & Strategic...

Professors & Heads of Mechanical &

Manufacturing Engineering

Session on Research and Innovation: Challenges and Opportunities

Industry Funded Research & Strategic Partnerships

Jim McDonald

Vice Chancellor , Strathclyde University



CONTEXT • Increasing linkage being made by international governments between HE sector

and driving economic growth (Engineering and Physical Sciences key): - Fraunhofer, Catapults, Catalysts, South Korea, H2020, etc

• The “Innovation” agenda is focussed on exploitation of research base and

increasing large & SME company engagement in innovation in technology, systems, commercialisation and product development

- KTP, Catapults, Innovation Centres, Catalysts • BIS industry and innovation strategies are impacting on funding/policy decision

making and sectoral focus

• Important recognition of dependency on fundamental research base – e.g. David Willetts, “8 great technologies”; £600M allocated to:

Big Data; Satellites/Applications; Robotics/Autonomous Systems; LS/Genomics /SynBio; Regenerative Med; Agri-science; Adv Mats /Nanotech; Energy/Storage

• Increasing funding and prioritisation “coordination” between EPSRC/RCUK & TSB/BIS

Business Expenditure on R&D • OECD Countries for comparison - 2011 (NB strong correlation between BERD levels and economic

/ industrial growth statistics)

Country BERD as % of GDP HERD as % of GDP Finland 2.67 0.76 Sweden 2.34 0.88 Denmark 2.09 0.92 Germany 1.90 0.52 USA 1.89 0.47 France 1.43 0.48 Ireland 1.17 0.47 UK 1.14 (£17.4B) 0.47 (£7.13B) Canada 0.89 0.66 Norway 0.85 0.52 Italy 0.68 0.36 Scotland 0.56 (£689M) 0.77 (£953M) (Israel) (3.51) (0.55) (Korea) (3.09) (0.41)

President Park Geun-hye • Industrial shift • Greater SME focus • internationalisation of

innovation system

EU President Van Rompuy: ‘Innovation is more than just

R&D policies. Innovation is the ability of a system to produce new ideas, but also to bring

them to the market, translate them into economic growth

and prosperity: • smart specialisation • European Research Centre • FP7 ------ Horizon2020 • Fraunhofer G’schaft

President Barack Obama ‘To win the future, the U.S. must out-innovate, out-

educate, and out-build the rest of the world’ • Educate the next generation with 21st Century skills and

create a world-class workforce • Strengthen and broaden American leadership in

fundamental research

President Xi Jinping urges ‘deepening reform, innovation-driven development’ • Project 985 – C9 - Chinese Ivy League • C9 has become C39

David Willetts & Vince Cable • BIS/TSB Industrial &

Innovation Strategies • Catapult Centres • ‘8 great technologies’ • RCUK and Science Budget

Brazil: Science without Borders India: 2013 – Science, Innovation & Technology Policy Russia: Skolkovo Innovation City Abu Dhabi: Masdar City

• Link between HE & Economy • - Post-16 Education Reform • - Innovation Centres • - TIC, AFRC, PNDC, Eng-Acad • - SE- Key Sectors (incl. HE) • - Industry Leadership Groups

Industrial Engagement and

Models for

Industry/Academic

Research Collaboration

The University of

Strathclyde

Industry partnership “escalation” model

Industry Consortium partnerships

Longer-term platform funding

Sponsored Research Programmes/Studentships

Knowledge Transfer Projects*

Single Project / Consultancy

Increasing levels of

investment

Increasing IPR pooling

Increasing degrees of

collaboration

Research & Innovation – Industry Collaborations

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9

TRL

Tech

no

logy

A

sse

ssm

ent

& P

rovi

ng

Pre

- P

rod

uct

ion

P

rod

uct

ion

Im

ple

men

tati

on

University Research

Industrial Exploitation

Research

Development

Deployment

Demonstration

Technology Strategy Board

EPSRC

Funding Streams

Scottish Enterprise

Government

Industry

Technology

Demonstration

and

Development

Horizon 2020

Where have we come from? Industrial collaborative examples

Advanced Forming Research Centre

(Launch 2010 - £95m funding):

£40m CAPEX (50:50) build/equip

£15m Industry Core Income

£4m EPSRC

£5m Other sources

£31m – TSB

‘Catapult’ in High Value Manuf.

Forged/Formed Components

High Value Manufacturing Catapult

• TSB funded - £25 - £35m+ per annum

• 7 centres plus overarching organisation – including AFRC

• Launched October 2011

• Through HVM Catapult, AFRC is doubling capacity and broadening

sectoral coverage

• New equipment for flow forming, rotary forging, larger SPF rig.

The Technology and Innovation Centre - TIC

• World-class centre for translational &

collaborative Research and Development with

Industry

• Technology development accelerator

• £100m capital investment in R&D complex

• Co-location of 1,200 University + Industry

Researchers, Engineers, Students and Project

managers

• £125m+ in international, collaborative R&D

programmes

• 700 new R&D posts

Research Areas

• Power, and energy

• High Value

Manufacturing and

Engineering

• Sensors, Photonics and

Laser technologies

• Bio-Photonics

• Low Carbon

technologies

• Bio-Nano metrology

• Renewables

Scale of Investment

Now

Within

12 months

Within

24 months

£5m £10m

TIC – Industry Engagement Tim

ing o

f In

vest

ment

http://www.davidbrown.com/

Our Vision

Renewables Future Grid Energy Transfer

. . . while transforming to a cleaner, more

efficient, modern generation fleet with an

interactive electrical grid.

Electricity that is….

1. Reliable

2. Affordable

3. Environmentally Responsible

Long-Term Operations

© Power Networks Demonstration Centre

2012

the Power Networks Centre

• Collaborative research directed by member companies

• Bespoke testing directed by research partner

• 11kV network with fault testing capability

• Grid voltage and frequency variations can be applied

an open membership demonstration facility

© Power Networks Demonstrtion Centre

2012

Help Move Technologies to the Commercialisation Stage…

• National Laboratories

• Universities

• Research Councils

PNDC

• Suppliers

• Vendors

• Utilities

PNDC as a Collaborative Technology Developer

Catapult is a Technology Strategy Board programme

Offshore Renewable Energy Catapult

Recap: Offshore renewable energy represents a significant opportunity for the UK

Unrivalled offshore renewable resources: • 50% of Europe’s wind energy

resource; • 35% of Europe’s wave resource; • 50% of Europe’s tidal resource.

If exploited, these resources will have a significant impact on the UK economy, e.g. • 78GW deployed by 2050 could:

• Provide £28bn revenues

• Employ 70,000 people

• Position the UK at the forefront of a global industry.

19

There are challenges to be overcome to exploit the opportunity

• Capital costs must be reduced: Offshore wind is currently more than £3M/MW compared with £1.6M/MW for onshore wind. When deployed, the first wave and tidal arrays are expected to cost £7-8M/MW

• Financial risk is a key uncertainty and impacts the pace of growth. We need to de-risk technologies to become bankable and insurable propositions at scale.

• Risk around repair liabilities and warrantees are a key component to cost in todays industry – the Catapult will work to bring this down.

20

The ORE Catapult intends to focus on cost and risk reduction

• Capital and O&M costs need to be reduced for offshore wind, wave and tidal

• Initial technologies also still need to be proven for wave and tidal

• Financial risk is a key uncertainty and impacts the pace of growth. We need to de-risk technologies to become bankable and insurable propositions at scale

Reducing Risk

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Today’s offshore wind Today’s wave and tidal

Work with the industry to reduce the

cost of capital of today technology, and

reduce costs of warrantees and

insurance

Work with the industry to increase

confidence for potential first farm

finance and would be project and

technology investors

Tomorrow’s lower cost

offshore wind

Work with the innovators to adopt a

development path which builds

confidence in emerging technologies.

Work with the innovators to progress

only the best concepts in a formulaic

way

Next gen wave and tidal

Basic Research

(TRL 1-2)

Applied Research

(TRL 3-4)

Early Demonstration

(TRL 5-6)

Full Demonstration

(TRL 7)

Early Deployment

(TRL 8)

Commercial with Support

(TRL 9)

Fully Commercial



Conclusions

• Need for continued recognition of the key requirement to support the

UK HE basic engineering and physical sciences base

• There must be continued emphasis on innovation and translation of low

TRL activity to higher (industry ready) TRL outcomes

• Engagement of SMEs can be enhanced through supply chain clusters

in key sectors e.g. manufacturing, aerospace, energy etc

• International partnerships are significant and valuable (cf H2020)

• An acceleration of the “triple helix” approach to research and innovation

is essential for the UK (private-public-academic partnerships)

• Last – but not least – attraction, retention and development of the

engineering and physical sciences “talent pool”

1796

The Place of Useful

Learning

The University of

Strathclyde

Knowledge Exchange:

Leadership, Governance and

Organisation of Strategic Centres’

Tim Bedford

David McBeth

Jim McDonald

Strategic Research & KE Centres -

External issues

• Intense competition for large government

grant applications.

• External funders require robust

governance than conventional research.

• UK and Scottish Governments “national

centre” based strategy regularly

references Strathclyde.

• Strathclyde’s unparalleled approach to

creating / supporting major strategic

research concentrations is positioning us

competitively to win more major funding

and build relationships

Critical success factors • Research critical mass • Significant grant/project

portfolio • Performance/output quality • Multi-disciplinary potential • International connectivity • Impact focussed institutional

strategy & ethos • Track record of industry and

business collaboration • One or more anchor partners • Robust governance shared with

external partners

Strategic Research & KE Centres -

Building out from existing strength

• Long standing experience across all four

faculties provides platform to build from

• Over the past five years we have

accelerated to create additional Strategic

Research & KE Centres

• Greater internal participation encouraged

in multi-disciplinary research & KE

• Greater coherence and credibility to

partners has positioned us to be more

influential in the Scottish, UK, EU and

international HE sectors – and new

partnerships are with high quality

institutions.

Long standing centres • Engineering:

• Rolls-Royce-UTC,CEPE,

RC-NDE, BRE-Trust

Centre

• Science:

• CPACT

• Business:

• Fraser of Allander

Institute

• HaSS:

• Glasgow School of

Social Work, CELCIS

Strategic Research & KE Centres –

positioning for the future

• The creation of our portfolio of Strategic Research & KE Centres

positions us to:

– Attract funding for EPSRC Centres for Doctoral Training

– Give us unparalleled advantage in the UK Catapult Centre Programmes

– Attract Fraunhofer Gesellschaft to us as their inaugural UK partner

– Be a credible bidder to play a leadership / ownership role in the evolution of

the UK National Physical Laboratories (NPL)

– Attract and retain world-class academics, researchers and students

– Collaboratively bid for Horizon 2020 projects

– Derive benefit for our U/G students – sponsorship, internship, employment

– Establish and grow links internationally – including Stanford, NYU, NTU,

Tsinghua, MIT, CMU, HK-UST

– Underpin the delivery of our Outcome Agreement and Institutional targets

Delivering an ecosystem where academics can be successful

External collaboration

University R, KE and L&T



Focussed strategy

Permanent University structure

Agile University

organisation

Sector focus Engagement

model

External academic

engagement


Innovation readiness


Innovation ecosystem

Governance structures

Focussed strategy

Institutions in the Strathclyde Innovation Eco-system

Relationships 1. Co-location; 2. Funding Programme 3. Governance link

Industrial Biotech

Innovation Centre

Strathclyde University

Catapult High Value

Manufacturing

Fraunhofer

Catapult Offshore

Renewable Energy

TSB Future Cities

Demonstrator (GCC)

Catapult Satellite

Applications

S.E. Inovo Building

Innovation Centre -Sensor

and Imaging Systems

Un

iver

sity

Str

ateg

ic M

anag

emen

t (E

T)

Staf

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e m

anag

emen

t In

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al F

inan

cial

an

d K

PI r

epo

rtin

g

S

cien

ce

Engi

nee

rin

g

SB

S

HA

SS

Single organisation engagement

Multiple 1-1 engagements

Collaborative multi-party engagement

Agile, opportunity driven engagements, aiming for at least 5-10 years sustainability

Rolls Royce UTC

GSK relationship

CELCIS

SETN

HTAS - New centre

incubation

AFRC

Risk Consortium

PNDC

CMAC

Weir Advanced Research

Centre

University structure and agile organisation

Example Centres

TIC Theme business

development - new centre “incubation”

Collaborative multi-party/ university engagement

TIC Low Carbon Power and

Energy

University structure

Industry – University Board

Programme portfolio

Academic and Industry Directors

Specific Industry partners

Other University partners

Public Sector -Funding Agency

Executive Dean Resources

Generic strategic,

operational and project

governance structure

Innovation Readiness

Improved Innovation Readiness

Staff develop-

ment

R&D Funding

R&D staff recruitment

University benefits

CPD

Research and

consultancy income

Graduate opport-unities

University-Industry Business Development, Relationship Management and Strategy

Influencing curriculum

Health Energy

Advanced Manufacturing

Future Cities

Sector based centres

and themes

Health Energy

Advanced Manufacturing

Future Cities

Including: • HT@S • Bionano tech • ROLEST • GSK partnership

Including: • TIC Low Carbon Power &

Energy • PNDC • EdF Energy Advanced

Diagnostic Centre • Strathclyde Oil & Gas Institute • Strathclyde Nuclear Institute

Including: • Institute for Future Cities • Future Cities Demonstrator

“City Observatory” • Centre for Internet Law and

Policy

Including: • AFRC • CMAC • WARC • SIOM • AMRL

Cross cutting expertise including SIPPI

Sector based centres

and themes

• AFRC: Advanced Forming Research Centre

• AMRL: Advanced Materials Research Laboratory

• BRE-Trust Centre: Building Research Establishment Trust Centre

• CELCIS: Centre for Excellence for Looked After Children

• CEPE: Centre for Electrical Power Engineering

• CPACT: Centre for Process Analysis and Control Technology

• CMAC: Centre for Continuous Manufacturing and Crystalisation

• HT@S: Health Technologies at Strathclyde

• RC-NDE: Research Centre for Non-Destructive Evaluation

• ROLEST: Robertson Trust Laboratory for Electronic Sterilisation Technologies

• Rolls-Royce-UTC: Rolls Royce University Technology Centre

• SIOM: Strathclyde Institute for Operations Management

• WARC: Weirs Advanced Research Centre

Acronyms

• Court approved creation (June 2012) of Interim Investment Committee (now CIAB) with an independent chair to (i) oversee the development of the new approach on behalf of the Executive Team and (ii) to recommend to the Executive Team individual investments for approval.

• CIAB established and meetings in Dec 2012, April 2013 and October 2013.

• Independent Chair: Dr Frank Blin, with the Treasurer and Margaret McGarry among members.

• 4 more CIAB meets planned in 13/14 with next scheduled for 11 December 2013

CIAB - Progress Update

CIAB - Progress Update

CIAB business to date :

– Strategic

• Revised policy for company creation & investment - launched

• Commercial investment processes & procedures - launched

• Strategy for Investor networks & investor relations work - approved

• Pipeline of new dealflow - shared

• Portfolio management – proposals to be shared at forthcoming CIAB(s)

• Major new fund proposals (Donation Fund & I2I Fund) - ongoing

– Operational • Smarter Grid Solutions Ltd £3M investment (2t) / University

£300k / 11.4% of the equity

• mLED Ltd £600k investment / University £100k / 16% of the equity

• Insignia Technologies Ltd £870k investment / University £87k / 10% of the equity

Manufacturing AFRC – TSB High Value

Manufacturing (HVM)

Catapult

Smart Cities Core partner in TSB

Future Cities Catapult

Demonstrator Project

Energy Host TSB Offshore

Renewable Energy

(ORE) Catapult HQ

Health

Technologies

Open

Innovation

Collaboration Research

Impact

Local and

global

partnerships

Strategic

relationships

Co-location

Student

experience

Accelerated

development

Leveraged

funding

Postgraduate

research

opportunities

Commercialisation

Core TIC Themes and Collaboration Clusters

TIC Corporate Partners

http://www.davidbrown.com/

Industry Funded Research & Strategic...

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